Which of the Following Is Not an Assumption of the Internal

question 18

Multiple Choice

Which of the following is not an assumption of the internal rate of return model?

• A)The amount and timing of all cash flows is known exactly.
• B)All cash flows occur at the end of the year.
• C)Cash inflows from the project are reinvested in another project earning a return equal to the internal rate of return.
• D)All of these answer choices are assumptions of the internal rate of return model.

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